ONE person is dead and two others injured after being stabbed in Melbourne’s Bourke St this afternoon.

Footage has captured shocking scenes in the busy CBD area today as three people were stabbed and a car went up in flames. Police shot a knife-wielding man in the chest after he confronted officers as they arrived on the scene.

(Photo: PrintScreen/Twitter)

In a press conference, Victoria Police Superintendent David Clayton told reporters that one of the people stabbed had died at the scene.

Police say they were called to the area about 4.20pm after receiving reports of a car on fire near the corner of Swanston St.

Supt Clayton told reporters that when officers got out of the car, they were confronted by a male brandishing a knife and threatening them.

“Passers-by were calling out that members of the public had been stabbed,” he said.

He said there were no known links to terrorism at this time.

Video has emerged of a man lunging at police with what appears to be a knife before being shot.

(Photo: PrintScreen/Twitter)

In an earlier statement, Victoria Police said a man was arrested at the scene and taken to hospital in critical condition. He is under police guard.

“A small number of people are being treated for stab wounds,” the statement said.

Ambulance Victoria said it assessed three people at the scene, who were then taken to hospital.

One had a neck injury and was in a suspected critical condition, a second person had a head injury; and the condition and injuries of the third person was unknown.

Police have urged anyone who witnessed the incident or who has footage of what happened to contact them.

The area is currently in lockdown and people are being advised to stay away from the CBD if possible. Supt Clayton said the bomb response unit was making the area safe.

Footage on social media shows a blue ute up in flames and a man dressed in a black tunic and white pants menacing police with what appears to be a knife. Another bystander tries to stop the man by rolling a shopping trolley in his path.